Cantor Fitzgerald Bullish on MSTR, Lifts PT

Cantor Fitzgerald has raised its price target for MicroStrategy (NASDAQ:MSTR) shares to $208, reaffirming an Overweight rating. This adjustment stems from a more bullish 12-month forward price assumption for Bitcoin, now projected at $112,000, an increase from the previous $98,000.

The firm's valuation methodology for MicroStrategy is based on a sum-of-the-parts analysis. This includes applying a 2x enterprise value to sales multiple on estimated 2027 sales of $509 million. Additionally, the valuation incorporates MicroStrategy's 848,000 Bitcoin holdings at the enhanced price assumption, boosting the estimated enterprise value to $110 billion from $97 billion. At $112,000 per Bitcoin, these holdings alone are valued at approximately $95 billion.

Cantor Fitzgerald also updated its financial models to account for MicroStrategy's recent digital asset holdings and U.S. dollar reserves. The firm noted a $20.91 billion gain on digital assets, alongside an associated $1.88 billion deferred tax expense, further refining its assessment of the company's financial standing.